Guyana Credits Private Investment for Growth as Turbines Run Short
Georgetown says private investment is driving growth outside oil, while a worldwide shortage of gas turbines complicates its power plans. The post Guyana Credits Private Investment for Growth as Turbines Run Short appeared first on The Rio Times .
This week, Guyana's government highlighted private investment as the driving force behind expansion beyond the oil sector. Simultaneously, the nation confirmed a global shortage of gas turbines is influencing its power plans. Situated on the northeastern edge of South America, Guyana boasts a population of approximately 800,000. Since the discovery of the Stabroek Block in 2019, its economy has surged faster than any other country in the region. Oil exports account for an overwhelming 92.9% of merchandise exports.
Guyana's infrastructure, including its electrical grid, has long been inadequate, frequently plagued by outages and high costs. The Wales gas-to-energy plant, crucial for addressing these issues, now sits in a global turbine shortage queue. The government and opposition pinpoint two interconnected issues: the feasibility of growth beyond oil and the ability of the power supply to keep pace.
President Irfaan Ali echoed these concerns during a business roundtable at the Americas Society during the UN assembly. The finance ministry reported a remarkable first-half growth rate of 33.3%, with the non-oil economy expanding by 10.1% during the same period. Mining and quarrying witnessed an impressive 40.7% growth, while construction saw a 24.7% increase.
The government has raised the old-age pension to G$46,000 (around US$220) monthly, public assistance to G$25,000 (about US$119), and granted adults a G$100,000 (approximately US$477) cash payment. Despite these strides, the non-oil sector's growth forecast remains below expectations, with a target of 7% annual growth, significantly lower than the current rate.
Opposition leader Terrence Campbell criticized the trimmed non-oil growth forecast while acknowledging the government's prudent macroeconomic policies and the Low Carbon Development Strategy 2030. The opposition emphasizes the need for funded regional recovery plans, particularly in areas like drainage, irrigation, cold storage, and market access.
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